A file for storing digital data with high compression rate stores digital data for video and audio signals in multiple streams interleaved with each other. Each track has a stream descriptor list and a stream data list. The stream descriptor list includes a stream header chunk, a stream format chunk, and a stream name chunk. For a video stream, the stream descriptor list also includes a stream header data chunk if the video stream is under digital rights management (DRM) protection. The file format is compatible with high level data compressing algorithms, such as MPEG-4, which provide data compression ratio about six to ten times higher than a standard DVD format.